Please see my previous post, since my prediction was true. For reference, the text is quoted below.
Price returned to the demand line and reflected high off my limit buy, yielding instant profit.
The next part: when to sell?
For this chart, I placed a line at the closest body of the next zone above current price (which makes it a supply zone). This is the best place to sell to take profit from this trade. For more risk/reward, sell only part of the order if wanting to take advantage of bullish momentum.
The same objectives are accomplished, but as a corollary to the long side by selling and being short:
The supply line was present in more than timeframe, not just this 4 hour chart (I will make a post showing this).
Personally, I placed a limit sell here for partial shares of this certain BTC account, since this is part of scaling in to trades.
"
The small candle with long wicks in between 2 big candles is the definition of a zone. Since the price line of the zone is lower than than current price, it's a demand zone . Demand zones are when the price is so low/high that enough buying interest is present to produce a higher likelihood of price increasing--similar to a line of support, but defined by price action rather than shape.
To take advantage of a demand zone, place limit buys at the top price of a demand zone if you expect price to go long in the medium term.
This accomplishes several objectives:
buying low/aiming for a cheap price
being contrarian, buying after lots of selling
staying patient, price has to drop short term before willing to buy
placing an order at a price with a history of fast moves (orders not filled and left over)
aligning with big money and their price levels (take advantage of large fast moves)
I personally placed a limit buy at this level. My account is only 15% long right now and my plan is to scale back in. This is the nearest strong well-defined demand zone closest to current price that will let me get in at a good price. 4 hour charts are great for scaling into and out of positions, since the levels tend to be stronger and less risky than lower time frames. (The trade off is that it takes longer for price to hit longer term targets than shorter.)
"
Price returned to the demand line and reflected high off my limit buy, yielding instant profit.
The next part: when to sell?
- take immediate profit
- take profit at a higher price (at a supply zone!) in same time frame
- stay long and keep a stop loss
For this chart, I placed a line at the closest body of the next zone above current price (which makes it a supply zone). This is the best place to sell to take profit from this trade. For more risk/reward, sell only part of the order if wanting to take advantage of bullish momentum.
The same objectives are accomplished, but as a corollary to the long side by selling and being short:
- selling high
- selling after lots of buying
The supply line was present in more than timeframe, not just this 4 hour chart (I will make a post showing this).
Personally, I placed a limit sell here for partial shares of this certain BTC account, since this is part of scaling in to trades.
"
The small candle with long wicks in between 2 big candles is the definition of a zone. Since the price line of the zone is lower than than current price, it's a demand zone . Demand zones are when the price is so low/high that enough buying interest is present to produce a higher likelihood of price increasing--similar to a line of support, but defined by price action rather than shape.
To take advantage of a demand zone, place limit buys at the top price of a demand zone if you expect price to go long in the medium term.
This accomplishes several objectives:
buying low/aiming for a cheap price
being contrarian, buying after lots of selling
staying patient, price has to drop short term before willing to buy
placing an order at a price with a history of fast moves (orders not filled and left over)
aligning with big money and their price levels (take advantage of large fast moves)
I personally placed a limit buy at this level. My account is only 15% long right now and my plan is to scale back in. This is the nearest strong well-defined demand zone closest to current price that will let me get in at a good price. 4 hour charts are great for scaling into and out of positions, since the levels tend to be stronger and less risky than lower time frames. (The trade off is that it takes longer for price to hit longer term targets than shorter.)
"
